May 20, 2022
5 Signs It’s Time to Hire an HR Consultant

Is your small business growing faster than anticipated? Or, on the opposite end of the spectrum, is it not growing as fast as you’d like? Whether you’re dealing with bandwidth issues or operations bottlenecks, it may be time to hire an HR consultant. 

Of course, every company is different, and human resources needs vary widely from one to the next. So while there are many benefits of HR outsourcing, you’ll want to identify the gaps in your company before hiring a firm. 

There are a plethora of HR functions that you could outsource. The question is, which are relevant to your business? How can you ensure that partnering with an HR company is a wise investment? 

Start by keeping an eye out for these signs that it’s time to hire an HR consultant. 

1. Your employee handbook is outdated or nonexistent

If this is the case, we’re guessing your policies and procedures likely need updating, too. Sure, an employee handbook is not a legal requirement. But it can go a long way in guiding and protecting both employees and your business. 

Has it been two or more years since your last handbook review? You could be at risk due to:

  • Outdated and potentially illegal policies
  • Non-compliance with State or Federal regulations or guidelines based on your company size
  • Missing policies that should protect your business and enforce best practices

Even if you already have a handbook, it’s not a set it and forget it document! Employer requirements change based on the size of your business, your location, and regular legal updates. It can be challenging to keep up with all of that, and remember to update your policies and handbook regularly. 

ALL employees should have access to the current version. When you create new policies or update existing ones, it’s also essential to notify and discuss the changes with your team and have them sign an acknowledgment. An HR consultant can help you develop, update, and administer your handbook and policies.

2. Your employee files are disorganized or lacking

Do you sweat at the thought of employee documentation? You probably need help managing this critical paperwork, which includes files for: 

  • Onboarding (e.g., letter of offer, W-4, I-9)
  • Payroll
  • Benefits
  • Performance management
  • Termination

The state and federal Departments of Labor have specific documentation requirements for employees and how those documents are handled and stored. So if you: 

  • Don’t have a clear checklist of which documents new hires must complete
  • Struggle to find necessary files when addressing a performance issue or termination
  • Lack a safe and secure file storage system

Consider hiring an HR consultant to help you create and maintain an employee document package and system.

3. You don’t have a formal employee review process

Performance reviews are still relevant and play a vital role in:

  • Documenting performance, whether positive or negative
  • Setting goals and expectations
  • Employee growth and retention

Your team WANTS reviews. In fact, 92% of workers polled want feedback more than once a year, while 64% said they received helpful feedback from their performance appraisal. 

Small businesses need an employee performance review process coupled with continuous praise and communication. This is a commonly outsourced HR function, as a consultant will help you design and implement review procedures around employee and company goals. 

4. You are struggling to hire new employees

If your team isn’t growing as quickly as you’d hoped, it could be due to a few issues:

  • You don’t have the bandwidth to recruit and hire quality candidates effectively
  • Your job descriptions do not align with your needs or the positions
  • Your employee benefits package is less than attractive (or nonexistent)

In today’s job economy, employers must be competitive and stand out. Not to mention, finding and hiring top talent takes significant time and effort. 

An HR consultant will bring their expertise in recruiting and interviewing along with an outside perspective. They can identify areas of improvement or opportunities to make your organization a top-notch place to work. Outsourcing the hiring process can help launch your company to the next level!

5. Your company has a high turnover rate

On the flip side, you may be struggling to keep the staff you already have — which can be extremely detrimental, especially when you lose high performers. You may be experiencing high employee turnover because of: 

  • Poor workplace culture
  • Not meeting employees’ needs and expectations
  • Lack of training and development opportunities
  • Poor management/leadership

When you’re so close to your own business, it can be difficult to gain clarity and get to the heart of the problem. 

However, an HR consulting firm can assess your company and team neutrally and identify the cause of your employee retention issues. Then, they can help you set goals and create an action plan to improve morale and processes. Many HR firms also provide training in various areas, from specific topics such as diversity, equity, and inclusion to leadership and management coaching.

How Could an HR Consultant Help Your Small Business?

Did one or more of the above statements hit close to home? Then it’s probably time to outsource some or all of your HR functions. Notice how your people are at the center of each of the five signs listed — your small business won’t grow unless you put your team first!

Still not sure exactly where your investment would be best spent? Not to worry! An experienced, reputable HR consultant will advise you on which services make the most sense for your company. 

To learn more, contact BlueLion for a consultation today at 603-818-4131 or We’ll be happy to discuss your options, answer any questions, and determine if we would be a good fit for your organization!

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.